US stocks are experiencing a rough patch amid concerns that Trump’s tariffs could lead to inflation or even a full-blown trade war.
According to Jay Woods, the chief global strategist at Freedom Capital Markets, the pressure is felt across the board.
Woods’ list includes Amazon, Goldman Sachs and Exxon.
Take a closer view at what each of these will bring to investors in 2025.
Amazon.com Inc. (NASDAQ: AMZN).
Woods said in a CNBC interview that Trump’s tariffs are still a concern to Amazon.
The market veteran still recommended “looking at their consistent efforts over time” and loading up on the ecommerce behemoth because it’s the “best in class”.
Amazon stock has fallen nearly 20% since February. Wood highlighted a favorable risk/reward setup in “Power Lunch” when the stock was trading at around $200 per share.
The strategist said that the recent pullback of AMZN was an opportunity to purchase a quality stock for a deep discount. He added, “$200 [is] a great level and, if this markets accelerates, then anything cheaper [is] a great opportunity.”
Goldman Sachs Group Inc (NYSE: GS)
In an interview, Jay Woods said that the shares of the multinational investment firm had declined by approximately 15% in the past three weeks. He described this as a good opportunity to buy.
The Trump tariffs, and what they could mean for US stocks near-to-medium term, have taken the focus off of a well founded expectation that “mergers will happen” in 2025.
Woods said that the bull thesis for Goldman Sachs is “this is a good time to buy the stock in the long-term.”
A 2.11% dividend yield is a great reason to buy GS at current levels.
Exxon Mobil Corp. (NYSE: XOM).
Woods called the $107 mark “a great entry point” on Friday, even though Exxon’s stock hasn’t seen a dip as pronounced as we’ve seen with Amazon and Goldman Sachs over the past few weeks.
Freedom Capital’s chief analyst sees XOM hitting $120 in the next few months, which represents a potential gain of 13%.
Woods also likes Exxon’s stock because of its strong financials. The oil and gas giant reported better-than expected quarterly results in late January on the backs of increased output from Permian, Guyana and other regions.
Exxon shares also pay a very lucrative dividend yield at the moment of around 3.68%.
This post Top 3 best-in-class stocks to buy during the recent pullback could be modified as updates unfold
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